“Utilitalia: 19.5 billion a year in post-PNRR investment is needed”
The Federation’s chief executive has put forward a proposal for a sector-specific ‘basket bond’ to support medium- to long-term programmes
‘In recent years, the NRRP has been a key driver in reviving investment in local public services, mobilising a total of around 24 billion euros for the water, waste and energy sectors. This significant injection of resources has been successfully channelled by our member companies in a timely and effective manner.” Utilitalia’s president, Luca Dal Fabbro, gets straight to the point and, in this interview with *Il Sole 24 Ore*, highlights the efforts made by companies to accelerate the energy transition. He does so on the eve of the Federation’s general assembly, which will bring together companies, institutions and stakeholders in Rome today to discuss development prospects in the post-PNRR phase. “We have managed to transform public funds into ongoing projects aimed at reducing water losses, creating modern circular economy facilities and digitising electricity networks – a process that has only just begun and must continue over the coming years,” continues Dal Fabbro. “And this effort has been concentrated above all in Southern Italy, an area where the infrastructure gap has historically been more pronounced and where there was a greater need to step up the pace to ensure social and territorial equity.”
What is the estimated funding requirement following the PNRR?
According to the Federation’s analysis, the investment requirement amounts to around 19.5 billion euros a year – of which 6 billion is for the water sector, 2 billion for the waste sector and 11.5 billion for the energy sector. We face a range of challenges: these range from improving the efficiency of water networks to modernising waste management facilities. In the energy sector, meanwhile, the priority is the modernisation and resilience of distribution networks. This represents a huge volume of investment which clearly cannot be sustained solely by companies’ ordinary finances, nor can it be passed on in full to the tariffs paid by the public.
What are the possible measures for raising new funds?
In keeping with the approach that has always characterised Utilitalia, we intend to roll up our sleeves and continue to invest in our country’s future. For this reason, we have championed the proposal for a sector-specific basket bond as part of a major initiative in industrial policy and financial inclusion. This instrument is designed to pool the financing needs of multiple companies and support medium- to long-term investment programmes, including those of smaller operators. The aim is to build a financial platform capable of broadening utilities’ access to the capital markets, diversifying sources of funding beyond the banking sector alone, and ensuring more stable support for infrastructure investment.
